We are in the bullish market with all US major indexes have broken up the descending line connecting the highs of Oct, 2007 and May, 2011. I would like to propose a scenario that we may see a forming of the major wave 3 of the bullish cycle originated from March 2009 and for a medium-term target we may aim to 1426.00. To get to 1426.00 we may need 4, 6, or even 8 weeks.
For an imminent and important pullback scenario from around 1370.58, we may need a negative geopolitical event which plays the role of a catalyst.
2/27/2012 Trading Setup
Following the trend is my choice. A dip that respects the lower line of the mini rising channel is a buy.